First Home Guarantee
We’re an approved lender for the First Home Guarantee (FHBG).
Your customers may be eligible.
We are accepting applications for FY23-24 Scheme Places.
MyState Bank is a Participating Lender for the Australian Government’s First Home Guarantee (FHBG).
What is the First Home Guarantee (FHBG)?
The FHBG is an Australian Government initiative to support eligible home buyers purchase a home sooner.
How does the FHBG work?
Usually home buyers with less than a 20% deposit need to pay lenders mortgage insurance. Under the FHBG, eligible home buyers can purchase a modest home with a deposit of as little as 5% (subject to MyState lending criteria). This is because Housing Australia guarantees up to 15% of the value of the property purchased.
If you have a customer that you think they may be eligible, here are your next steps:
Review the scheme requirements
The official Housing Australia website has guidelines regarding property price thresholds, customer incomes and other criteria. Here you will find the FHBG Fact Sheet to learn more.
Submit the loan application
Make sure you include ALL of the supporting documents in our Broker Submission Checklist – PLUS any extras required by the scheme, including the Home Buyer Declaration.
Is your customer eligible?
If you can tick off all of these requirements, then most likely, your customer is eligible to receive the offer:
- They are individual or joint applications..
- They’re Australian citizens and permanent residents who are at least 18 years of age
- They pass an income test
- They have at least a 5% deposit saved
- They are either first home buyers or previous homeowners who haven’t owned a property in Australia in the past 10 years. Prior property ownership includes an interest in real property (including owning land) in Australia, a lease of land in Australia or a company title interest in land in Australia.
- They are going to live in the property (not an investment)
- The property they are looking to purchase falls within the Property Price Thresholds
Find out more about the eligibility requirements on the official Housing Australia website and by downloading the First Home Guarantee (FHBG) Fact Sheet.
Income Test
The Scheme includes an income test for:
- Individual applicants – the taxable income for the previous financial year must not be more than $125,000
- Joint applicants – the combined taxable income for the previous income year must not be more than $200,000
Property Price Thresholds
There is a maximum property purchase price under the Scheme which applies in capital cities, large regional centres and regional areas. You can find a list of the property price thresholds as well as a tool to search by postcode on the Housing Australia website.
